Do your employees feel exhausted and disengaged? Do they appear less motivated than usual? Or maybe they're experiencing burnout, and their morale is low?
Around 75% of workers have experienced burnout at work for various reasons. While this seems common, burnout and disengagement can lead to low productivity and high employee turnover rates if not addressed in time, ultimately harming the bottom line.
So, how can your employees stay motivated and engaged? Incentivization. An effective employee incentive program gives employees something to work towards and tangible acknowledgment for their efforts.
Discover how to incentivize, set reachable, measurable, and specific goals, put the program in motion, and learn other helpful tips with this handy guide to employee incentive programs.
An employee incentive program is purpose-built to encourage and motivate employees to work productively, effectively, and efficiently. It involves offering small tokens of recognition and appreciation for promoting positive workforce behavior and increasing employee success rates.
As an employer, you have a range of options for employee incentive programs. You can offer financial incentives and non-monetary incentives based on employee productivity, revenue, metrics, and other standards that align with your company's goals.
Just under 80% of Americans live paycheck to paycheck. This staggering statistic demonstrates the financial burden of many employees due to inflation, financial illiteracy, childcare, and other issues in employees’ personal lives. Life happens, and oftentimes, money is the core of the issue. As such, monetary rewards as part of your employee incentive programs are always a welcomed perk.
Not every company has a budget to provide cash-based employee incentive plans, but non-monetary incentives (think travel rewards, wellness programs, extra vacation days, etc.) may also be equally as effective in terms of employee Therefore, combining both forms of incentives into your employee incentive program ideas is crucial to overall job satisfaction and retention rates.
Here's a list of some monetary and non-monetary incentive programs you can initiate in your company:
Monetary Incentive Programs
Non-monetary Incentive Programs
Incentives and benefits may sound similar because they aim to strengthen employees' bonds with the company. However, there are differences between the two.
Incentives:
Benefits:
Benefits are unpaid additions to an employee's salary. They include health insurance, sick leave, paid time off, disability leave, and unemployment compensation, which are separate from other types of incentives.
Employee incentive programs work because they're rooted in human behavior. Science reveals that reward systems effectively reinforce good behavior, especially when given immediately after the desired behavior occurs.
Applying the same idea to employee incentive programs, the direct link between goal behavior and positive outcomes can boost motivation and cement positive habits in employees.
Here are the differences in employee behavior when you offer incentives and when you don't:
Offer Incentives
Don’t Offer Incentives
Designing and implementing well-structured employee incentive programs will keep your employees happy and retain top talent. But offering incentives to your employees also brings other tremendous benefits.
Employee incentive programs assure employees that their hard work and dedication don't go unnoticed, setting a new precedent for performance. As they try to reach that standard to attain their personal goals, your business gains a productivity boost.
A good incentive program creates an environment that fosters employee collaboration instead of co-worker competition. It encourages teams to work efficiently and effectively together. With this newfound concept of teamwork, your employees will feel more comfortable working with each other and impact the work environment positively.
Pro Tip: In addition to employee incentive programs, teamwork can also be enhanced through team events, in-person and virtual happy hours, and other social activities.
According to recent workplace stress statistics, 71 % of employees feel increasingly burned out, stressed, or depressed. Conversely, when they are satisfied with their work, they willingly put in their best effort to produce better results.
The more they feel appreciated through employee incentive programs, the higher the impact on their morale and motivation. As a result, your business succeeds.
Incentives are an effective method to increase loyalty to a company. Celebrating employees' good work and commitment to the workplace increases employee retention and makes them work harder for your organization.
Factor in the cost of hiring a new employee — roughly 1.2 to 1.4 times their annual salary — and an employee incentive program is a cost-effective, thrifty part of your organization.
Employee behavior and related perks have shifted in recent years. With fewer incentives, young employees, especially, are less willing to remain at their jobs. Offering incentives like flexible work schedules, stipends, or wellness programs keeps employees satisfied, lowering employee turnover rates and retaining talented employees.
Rewards increase employee engagement by giving them a sense of belonging and visibility inside the organization. Offering particular incentives motivates workers and improves their connections with colleagues and customers.
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Though employee incentive programs sound good in theory, improperly planned programs are either hard to implement or don't matter to your employees. Therefore, mold your program to meet employee expectations and give them the rewards they actually want.
Performance bonuses are regularly scheduled cash gifts that reflect employee success. They track employee performance goals and reward the top performers when they contribute to the financial success and growth of the company.
Another option for employers is a retention bonus. Companies give this financial compensation to employees who have remained with them for a specific length of time. Offering this incentive is an excellent way to keep your employees engaged and ensure they remain loyal to your company.
Did you know that investing in your employees' professional development can keep them loyal to you for a long time?
Recent trends show that Millennials and Gen Z employees value professional development more than a steady paycheck. Offering this incentive tells them that you care about their personal growth, and your business, in turn, benefits from the new knowledge and experiences they have to share.
Different ways you can engage your employees in personal growth and career development include:
You can also use Hoppier to provide team learning and development opportunities from world-class professional learning platforms like Udacity and Udemy.
Simply email employees a digital card with their learning stipend. Employees can then spend their allowance on a course of their choosing. Alternatively, you can limit the options so they align with your brand and company culture.
Sign up with Hoppier to get started.
Another way to motivate your employees to keep increasing their numbers is through profit-sharing. Set aside a percentage of the net profits and split it among your employees. Use an appropriate shareable percentage of incoming profits and standard increases annually or bi-annually.
This incentive style empowers employees to see themselves as owners — not just staff — ultimately encouraging them to focus on your company's long-term success.
If your employees achieve their goals, give them the occasional Friday off or buy them tickets for a much-needed vacation if your budget allows. This helps them maintain a work-life balance, which significantly increases motivation. The more comfortable they become, the better they will perform at work.
Rewarding your employees who spent weeks or months working on a big project encourages them to work similarly on the next project that comes their way.
Set a deadline that employees must meet to receive a reward. For example, if everyone on the marketing team meets their deliverables and gets client approval before the end of the week, they get a $500 bonus. This is a great tactic to encourage teamwork and camaraderie among team members and ensure they accomplish set goals.
Remote employees may incur extra costs to create a workspace for themselves at home. Wouldn't it be nice to lift that burden by providing them with work-from-home equipment?
A standing desk or work chair diminishes the aches and pains of sitting, which can negatively affect productivity. You can even do something extra, like paying for their internet connection or buying handy office gadgets.
To make this plan work,
This employee incentive program idea gives employees an equity stake in the business. It's a well-known way of motivating employees because of its many benefits, such as managing equity risk, boosting employee retention and satisfaction, and reducing turnover.
The National Center for Employee Ownership's research shows that companies with employee stock ownership plans grow 8%-11% faster each year. No wonder big companies like Disney and Walmart have ESOPs as an employee incentive program in their organization.
Annual incentives are merit-based raises tied to performance and specific goals. These raises can add up over time and give your employees a strong reason to stick with your company. Some examples of annual incentives are yearly cost-of-living adjustments or a higher base pay rate.
Many people would love to retire early but don't have the savings or the means for it. Contributing to your employees' retirement plans as a 401(k) plan with an employer match is a desirable incentive for your workers to get on track financially. Retirement fund contributions not only benefit your employees but also help you attract talent and improve employee satisfaction.
Spot awards or bonuses are cash rewards given to employees in real-time in direct response to achievement. They recognize employees for working on challenging projects or taking extra initiative to get the job done.
This form of incentive is hugely effective and quick to execute as monetary-based or point-based rewards. The point-based reward involves accumulating points over time, which are then redeemed as cash.
Employee rewards and recognition are among the most effective ways to show appreciation for employees who have been loyal to you for a long time. More than 50% of employees say recognition helps them feel seen and would be more effective than money in appreciating them.
Referral bonuses are cash rewards that employees receive for connecting their employers with a candidate for an open position. Employees feel motivated and take their time to find the right fit for the job, not only for the reward but also because their reputation is on the line.
If you offer referral bonuses, you tend to attract better employees since the referrer is personally invested in the referral’s success.
Flexibility with when and where your employees work is one of the best ways to help relieve stress. Whether in remote or hybrid work, being flexible about work hours helps your employees feel in control of their own schedule.
While a flexible work schedule is a great incentive, ensure to keep some guidelines at hand for coordinating and effectively executing tasks. Consider these flexible schedule examples:
Gift cards are one of the coolest ways to reward your employees. They provide a personal and specialized touch while allowing your employees to choose the gifts they really want.
You don't need a particular period to send out gift cards. Hand out gift cards to your employees whenever you like and base them on their preferences, such as a music subscription, restaurant, or bookstore.
Hoppier provides a myriad of vendors and convenient options for your employee incentive gift card program. Pick a virtual gift card within your dollar limit and take advantage of Hoppier's partnerships with global vendors like Starbucks and Dunkin’ (for fresh morning coffee and snacks) and IKEA and Amazon (for their WFH setups). Easily send bulk gift cards at the touch of a button using Hoppier.
Staff care packages are sweet and simple, but they have a profound effect on employees. They help boost your employees’ morale and promote mental and physical well-being. Perfect for remote workers, staff care packages might include a home office starter pack, scented candles, healthy snacks, and more.
Wellness incentives are vital if you want your employees to perform at their peak. Many remote and in-office employees don't take any time off to decompress. Offering these benefits as part of your employee incentive program prevents burnout and promotes physical and mental health.
You can do this by:
Giving awards like “Top Performer of the Year,” “Employee of the Month,” and so on can boost employee morale and satisfaction. This form of public recognition tells your employees you're grateful for their work and informs others of their accomplishments. It reinforces your company's values and motivates others to improve their performance as well.
Employee incentive programs that include streaming subscriptions like Netflix or Amazon Prime Video bring entertainment to your employees and one less financial strain to worry about. Everyone loves to wind down with a movie or two, so this is a necessary incentive to consider.
You can make it more fun by offering company-wide screenings of popular TV shows and movies, documentaries, and informative content that provides skill and personal growth. Not only will your employees be entertained, but this will also foster communication and encourage team building.
Allowing your staff to volunteer for a good cause is a great way to benefit them and your community. Some people enjoy giving back to their local community through volunteer activities or charitable organizations.
As a company, you can organize volunteer opportunities as a team activity or allow individual employees to take a day off that is convenient for them. This encourages meaningful bonding with your employees and is also vital to the growth and development of your company.
Club memberships are essential if you want to foster employee engagement within your organization and improve the quality of their time away from work.
Some ways to do this include:
Now that you know the benefits of an employee recognition program and different employee incentive program ideas you can implement, the next question is how you should budget for it. The answer depends on what you hope to achieve from the incentive program. Make certain to consider:
The Society for Human Resources Management recommends a budget of 1% or more of your total payroll. However, other factors influence your final budget considerations:
After deciding on the employee incentive programs you want for your company, you need to implement them correctly. Failure to plan and structure a well-oiled program can lead to sunken costs and other issues. Add these practices to your program implementation process to streamline the process.
To begin with, you must understand why employee incentive programs are crucial. Nascent programs often fail to define their meaning or purpose, so avoid this pitfall. They could improve your customer service, boost the productivity of your employees, or increase your company sales.
Before settling on an incentive idea, identify various programs all employees can access. You can also involve employees in the selection process by sending out a survey of incentive ideas and asking them to add their own if none of the ideas fit.
The results will give you an idea of what motivates them the most. This will guide you when choosing the right incentive programs and making your plans effective, as your employees will be more aware of their needs.
Awarding your employees expensive incentives like bonuses or paid vacations can significantly boost their morale, but problems can arise if these aren’t sustainable over the long run. To avoid financial issues, align your incentives with your company's profits and determine how much you're willing to invest in incentive packages.
Incentive companies can facilitate a successful employee incentive program, but choosing the right one for your company can make a huge difference. The right incentive provider is an asset, helping you devise a program aligned with your organizational objectives.
To find out if your incentive program provider measures up, ask questions like:
Knowing what you need and asking for it makes you more likely to choose the right incentive company for you.
As a low-cost alternative to pricy incentive providers, Hoppier can be your company's unfair advantage. It lets you send virtual credit cards to your team members ahead of time so they get something they genuinely need and want wherever they are. Not only will this make your employee incentive program more personalized, but it's also super convenient and time-saving.
After launching your employee incentive program, you must understand its impact on the employees' productivity, performance, and business goals.
Here are some ways to gain insight into your incentive program's overall impact:
When done right, employee incentive programs can take your company to the next level. However, mistakes are more common than you might think. Avoid these pitfalls to ensure a smooth transition from ideation to implementation:
You don’t have to build an entire employee incentive program without inspiration. Plenty of successful corporations have implemented these programs with excellent results, providing unique, exciting perks.
During the pandemic, HP Inc. redesigned its employee incentive program to include virtual Saturday dance parties, cooking classes from Michelin-starred chefs, home learning support, and financial bonuses. The company also rewards all employees who report at least ten hours of volunteer work per quarter with paid volunteer time, employee discounts, and paid vacations.
Apple has always ranked high in workplace experiences. It understands and recognizes that the entire workforce's efforts are integral to its success.
The company has a stellar employee recognition strategy, including a three-day paid holiday instead of the usual one-day off on Thanksgiving. In addition, Apple customized this particular reward based on the employee's location and job role. Employees located in different countries would also get the same paid time off on a similar holiday.
HubSpot offers a comprehensive list of incentives to cater to various employee preferences, including unlimited holidays, flexible work schedules, well-being initiatives, and tuition reimbursements for university degrees.
The company also went as far as supporting parents and future parents with generous parental leave and assistance with the financial cost of freezing eggs.
Microsoft has long been known for some of the coolest employee incentive programs. Recently, the company was recognized for its contribution and commitment to creating a healthy environment, community, and workforce. Some of its incentives include childcare, health coverage, and an extensive network of social clubs.
Creating an employee incentive program is a win-win strategy. It reaps the rewards of increased engagement and productivity. In the same vein, it helps your employees by allowing them to feel recognized and rewarded for all the effort they put in.
Now that you know everything about an employee incentive program, implement one for your organization. If you're wondering how to start, consider using an employee incentive platform like Hoppier to easily manage and measure the success of your employee incentive program—and offer incentives your employees genuinely care about.
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
Ready to 2x your global engagement at your next event, with Ox stress?
Make Hoppier your unfair advantage today, schedule a demo
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